Small Firms Report Higher Profits; Adoption of HSAs Rising Amidst
Static Healthcare Costs
CHICAGO, July 22 /PRNewswire/ -- Amidst renewed optimism related to profits
and sales, the presidents/owners of 2,300 small businesses reported mixed
feelings about their healthcare commitment, according to Small Business Digest.
More than half (55%) say sales in their sector are better than during 2003 and
a third report their own sales higher as well. Company profits ranged higher
for 42% of those reporting.
Despite brighter sales and profit numbers, respondents were clearly not
inclined to increase healthcare commitments to employees. Only 5% said they
would increase them, while 27% said they would decrease them. The remainder,
68%, said their commitment would remain unchanged.
However, Health Savings Accounts are being adopted, according to JoAnn Laing,
President of Information Strategies, Inc., parent of the above online
newsletter. She reported the first results during the Consumer-Directed Health
2004 conference in Chicago.
HSA Being Adopted According to Laing, 52% of respondents knew about HSAs and 4% had already
mandated them for all employees. The survey also reported that another 4% of
the companies offered HSAs to employees. Equally important, 10% expected to
offer HSAs by the end of 2005, with an additional 11% at a later date.
Reflecting the fact that almost 47% of respondents had not heard of HSAs, 42%
said they were unsure of what they would do.
From analysis of other internal data and comments made by respondents, it is
clear that many already view HSAs as a possible component of long-term
viability as they shift more of the healthcare burden onto employees.
According to Laing, respondents who outlined a reduction in financial exposure
and improved productivity were also in the forefront of HSA adoption, resulting
in healthcare cost reduction.
"Put simply, HSAs appear to be most appealing to companies with long-term
performance improvement procedures already in hand," she added.
About The Company Information Strategies, Inc., is a marketing and information firm serving more
than one million regular small business clients each month.
Laing also advises large corporations on how to market products to this
audience. The company's regular small business surveys surfaced the need for
healthcare change. As a result, she commissioned an economic study of HSA
adoption rates and is author of the new book "The Small Business Guide To
HSAs," to be published next month by Brick Tower Press.
Information Strategies also created http://www.hsafinder.com/ , the most
visited independent website for information about HSAs. DATASOURCE: Information Strategies, Inc., CONTACT: Donald Mazzella, +1-201-242-0600, , for Information Strategies, Inc.
Web site: http://www.hsafinder.com/ http://bizinfodigest.com/
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